Known for his strong interest in taking over other people’s businesses, Alexey Tulupov is attempting to establish the biggest bakery company in Russia.
.jpg?v1663134066 "Bread niche of businessman Tulupov")
The news about BKH Kolomensky, owned by Sminex's owner Alexei Tulupov, deciding to acquire a controlling share in Volzhsky Baker, the largest bakery company in the Tver region, came out in August. The acquisition has now been approved by the FAS.
If the businessman can carry out other deals to purchase specialized assets, he will be able to completely dominate the “bread business.” The question is whether the notorious member of the Rosbuilding structure will succeed, and how this move will impact the bread market, says the correspondent of The Moscow Post understood.
Bread King
Tulupov’s expansion into the bakery market seems quite unusual. OJSC Moscow Bakery and Confectionery Plant (MBKK) Kolomenskoye was acquired by its development company Sminex. Moreover, the company purchased it for just 70 million rubles. Given that this is one of the primary players in the Moscow grain market, the amount is insignificant.
He also acquired a 3-hectare territory between the Warsaw and Kashirsky highways. What's interesting is that the plant's territory was originally considered for development: several production buildings were sold for offices after renovation. The bakery business was also planned for sale, negotiations were underway, but there were no buyers.
The enterprise did not fare well after Tulupov's acquisition. The plant operated at a loss, reaching 1.4 million rubles by the end of 2019. However, Tulupov was able to sustain it. There was also a significant financial decline from 2020 to 2021.
Photo: rusprofile.ru
Despite this, Forbes reported that in 2021, Kolomenskoye leads the market in monetary terms, followed by Fazer and Stoilenskaya Niva. This story is quite intriguing.
In April, the company acquired the Russian business of the Finnish group Fazer, which ceased operations in the country due to sanctions. The deal was valued at 4 billion rubles. In 2021, the company's revenue reached 14 billion rubles, making Tulupov’s move to acquire this player a strategic one. The question is how it will perform in the future.
As for Tulupov's new asset, it is already running at a loss. According to Rusprofile, last year the loss amounted to 11 million rubles. This shows that the businessman acquired the enterprise to thoroughly dominate the niche.
Photo: rusprofile.ru
In 2018, the Dedovsky Bread plant in Istra near Moscow became part of the Kolomensky holding, and things surprisingly improved there.
Photo: rusprofile.ru
Let’s also mention how Tulupov acquired the Balashikha Bread enterprise near Moscow at an auction for only 204 million rubles. The enterprise had gone bankrupt, and it was timely “sheltered” by the Kolomensky holding. Previously, it was part of Igor Pinkevich's Nastyusha group, who was arrested in a case of embezzlement of 40 billion rubles from equity holders of the Tsaritsyno residential complex.
There is no money, but business is needed
What's the problem with Tulupov wanting to control bread production for himself? However, his past is questionable, as he comes from the controversial company “Rosbuilding,” where he collaborated with Sergei Gordeev, the owner of the development group “PIK.”
Additionally, Rosbuilding is known for hostile takeovers, being one of the first companies associated with this practice in the early 2000s, according to The Firm’s Secret publication. The name “Rosbuilding” was linked with “infamous” during that time.
Rumors suggest that Tulupov and Gordeev clashed with Yuri Luzhkov, then the mayor of Moscow. Luzhkov disapproved of the businessmen's aggressive tactics, leading Gordeev and Tulupov to part ways and Tulupov is now trying to fix his business affairs.
Tulupov’s track record includes shutting down LLC “Research Institute of Vitamins,” which he acquired in 2011 for 491.5 million rubles. Despite Sminex's plans to build an office center on its premises, the institute involved in drug research and vitamin documentation examination was closed in 2018.
A similar fate befell the Ginalmazzoloto Research Institute, specializing in recycling precious metals, which Tulupov bought for 227.56 million rubles.
Life Is Not Means
Given Tulupov’s questionable activities, the main question is, where does he get the money for the bread business? Looking at Sminex Holding LLC, it seems more like a one-day company than a development firm, and it faces severe financial difficulties.
Looking closer, at the end of 2019, the company suffered significant losses of 593 million rubles, with a mere revenue of 200 thousand rubles and assets valued at negative 2.1 billion rubles.
The situation has only worsened in 2021, with meager revenue of 321 thousand rubles, losses of 1.6 billion rubles, and assets valued at negative 6.9 billion rubles.
Photo: rusprofile.ru
This indicates that the company has been on the verge of collapse due to debt obligations for years, raising the pertinent question of where the funds for the business originate. Could the business be built on hostile takeovers or siphoning assets from acquired companies?
Despite these challenges, Tulupov actively continues to expand his construction and bread businesses, potentially aiming to establish operations in other regions.
Kolomensky's acquisition of a Tver-based manufacturer will be a significant move in the bakery industry, but there are doubts about the product quality. It may turn out to be a front for illegal activity or a means of extracting funds from other assets.
Sminex
